Ron Cohen believes water customer rates would be lower if the California-American Water company was booted out of power and a public utility took over water supplies and management.

Ron Cohen believes water customer rates would be lower if the California-American Water company was booted out of power and a public utility took over water supplies and management.

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Updated: 5:36 PM PDT Jun 2, 2014

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WEBVTT PERHAPS THE MOSTCONTENTIOUS ISSUEFACING VOTERS ON THEMONTEREY PENINSULA...MEASURE O... THEJUNE THIRD BALLOTINIATIVE TO PUBLICALLYBUY-OUT CAL-AM ANDTAKE OVER THEPENINSULA'S WATERSYSTEM.JUST LAST NIGHT,MONTEREY COUNTYBOARD OF SUPERVISORSVOTED TO OPPOSE THEMEASURE ..THERE IS A LOT ATSTAKE... a lot OF MONEYBEING SPENT...AND PLENTY OFCONFUSION ON EXACTLYWHAT MEASURE-O MEANSTO DO.WITH A BREAK DOWNON MEASURE O HERE'SACTION NEWS REPORTERMICHELLE IMPERATO.###14:16-23we believe what we represent islower costs and local ownershipwhich also means local controlRON COHEN IS THE MANAGINGDIRECTOR OF PUBLIC WATERNOW, AND THE DRIVING FORCEBEHIND MEASURE O...AMEASURE WHICH... IN THE LONGRUN...COULD MEAN A PUBLICTAKEOVER OF THE PRIVATELYOWNED CALIFORNIA AMERICANWATER.COHEN CLAIMS IF ALL WATERASSETS ON THE PENINSULAWERE PUBLICLY OWNED...WATER RATES WOULD BELOWER... HE CITES OTHERPRIVATE WATER TAKEOVERS ASEXAMPLES, LIKE THE ONE INFELTON ...BUT THIS HAS YET TO BEWATER RATES WOULD BELOWER... HE CITES OTHERPRIVATE WATER TAKEOVERS ASEXAMPLES, LIKE THE ONE INFELTON ...BUT THIS HAS YET TO BEPROVEN TRUE ON THEPENINSULA.13:59-15 more than 90percent of californians gettheirwater from public watercompanies, so this is not somekind of radical, weird idea, infactthe cal am model is the radicalweird idea COHEN SAYSMEAUSRE O WILL DO THREETHINGS...-FUND A STUDY THAT WILLDETERMINE WHETHER A PUBLICTAKEOVER OF CAL AM ISFEASIBLE AND BENEFICIAL...- REQUIRE THE MONTEREYPENINSULA WATERMANAGEMENT DISTRICT TOMAKE IT THEIR POLICY... THATIF A PUBLIC TAKEOVER ISFOUND FEASABLE...TO WOULD TAKE ACTIONS TOACQUIRE CAL AM'S WATERSYSTEM ASSESTS.-AND FINALLY... IF IT'SFOUND FEASIBLE...MEASURE O WOULDDIRECT THE MONTEREYPENINSULA WATERMANAGEMENT DISTRICT TOSTART NEGOTIATIONS WITHCAL AM... AND IF THAT FAILS...THE DISTRICT WOULD PURSUE ATAKEOVER THROUGH EMINENTDOMAIN 1:12-26 it's reallythewrong measure at the wrong timeCARMEL MAYOR JASONBURNETT HAS COME OUTAGAINST THE BALLOTMEASURE...HE CLAIMS THIS STUDY will: --COST CUSTOMERS UPWARDS OFHALF A MILLION DOLLARS...-- And DISTRACT FROM THEREAL TASK AT HAND ... THEDESALINATION PLANT- 48-54really I want them to be focusedCOST CUSTOMERS UPWARDS OFHALF A MILLION DOLLARS...-- And DISTRACT FROM THEREAL TASK AT HAND ... THEDESALINATION PLANT- 48-54really I want them to be focusedon water supply, we're focusedon water supply and that's whatthis is all about.BURNETT SAYS THEY WILLCONTINUE TO PURSUE THEDESAL PLANT REGARDLESS...BUT IS CONCERNED MEASUREO'S FEASIBILITY STUDY WILL,WASTE TIME, MONEY ANDVALUABLE RESOURCES.AND HE'S NOT THE ONLYONE... ALL SIX PENINSULAMAYORS HAVE COME OUTAGAINST MEASURE O....ALL OF THE MAYORSAPPEARED IN A CAMPAIGNADVERTISEMENT FOR THEGROUP "NO ON O" nat soundsof commercial STUCK IN THEMIDDLE OF THIS BALLOTMEASURE... IS THE MONTEREYPENINSULA WATERMANAGEMENT DISTRICT....54:55 We're neutral we don'thave a position, GENERALMANAGER DAVE STOLDT SAYSTHE BOARD ISN'T TAKINGSIDES... BUT HE SEES BOTH THEPROS AND CONS HE SAYSIT'S IMPORTANT VOTERS KNOW- EVEN IF MEASURE O DOESPASS... IT DOES NOT MEAN ATAKE OVER OF THE CAL-AMWATER SYSTEMWILLOCCUR ... IT JUSTMEANS A CONSULTANT WILLSTUDY THE POSSIBILITY...STOLDT SAYS ONE THING ISFOR SURE...IF MEASURE O PASSES...THE FEASIBILITY STUDY WILLHAVE TO BE THOROUGH ANDACCOUNT FOR A LENGTHYEMINENT DOMAIN PROCESS1:08:21-38 so you enter in theeminent domain procedure, that'sa three to five year process. inthe meantime you're going tohave a new water supply builtover here and that may newwater supply may be 2 -3hundred million dollars so nowyou've just increased the valueofthe asset at the same timeyou'renegotiating.STOLDT ALSO STRESSED...THE WATER DISTRICTCAN AND WILLFOCUS ON TWO ISSUES ATONCE...IF IT COMES DOWN TO IT ...1:09:37-49 i think watersupply is going to get built ithinkwe're going to be able to dealwith the cease and desist orderand this is a distractioncertainlybut it's something that'shappening apart from all theother things ACTION NEWSREACHED OUT TO CAL AM FORCOMMENT... THE UTILITY HADTHIS TO SAY: "This is the wrongmeasure at the wrong time.Mayors, local agencies and thewater company, workingtogether, are closer than evertofinding a new water supply forthe Monterey Peninsula." THEMONTEREY PENINSULA WATERMANAGEMENT DISTRICTCONTACTED AN ENGINEERINGFIRM TO SEE HOW MUCH THEFEASIBLILTY STUDY WILLCOST... STOLDT SAYS...IT WILL BE ANYWHERE FROM 4-600 THOUSAND DOLLARS WHICHINCLUDES A LEGAL STRATEGYBUT DOES NOT COVER LEGALCOSTS ASSOCIATED WITH ATAKEOVER SHOULD IT HAPPEN.MICHELLE IMPERATO KSBWACTION NEWS 8.#OPPONENTS OFMEASURE O ARESPENDING HUNDREDS OFTHOUSANDS OF DOLLARSON MEDIA TO GET THEIRMESSAGE OUT.YOU'VE LIKELY SEEN ANUMBER OF TELEVISIONCOMMERCIALS ALREADY.AND ACTION NEWSREPORTER MAY CHOWPUTS ONE OF THE "NO-ON-O" TELEVISIONCOMMERCIALS TO THETRUTH TEST.####DAN...ERIN...THE ADGOES TO A FELTONWATER CUSTOMERPROMISING INCREASEDWATER RATES ANDPROPERTY TAXES IFMEASURE-O PASSES...SOWE WANTED TO SEE HOWIT MEASURED UP TO THETRUTH...BETH: "in 2005, we voted for apublic takeover of system justlikewhat you're considering withmeasure o, if I knew then what Iknow now, I wouldn't have votedfor it."IN 20-05, A CITIZENSGROUP CALLED "FELTONFRIENDS OF LOCALLYOWNED WATER -- ORFLOW -- PUT A PROPERTYTAX INCREASE ON THELOCAL BALLOT TO RAISE11-MILLION DOLLRS TOBUY THE WATER SYSTEM.VOTERS PASSED THEMEASURE....AND THE SANLORENZO VALLEY WATERDISTRICT OFFERED 7-AND-A-HALF MILLIONDOLLARS TO BUY THEFELTON SYSTEM FROMCAL-AM...CAL-AM SAID THEPRICE WAS 25-MILLIONAND REFUSED TO SELL...SO FELTON RESIDENTSAND THE COUNTY BEGANEMINENT DOMAINPROCEEDINGS.IN 20-08, CAL-AMSOLD THE SYSTEM TOTHE WATER DISTRICTFOR 10-AND-A HALFMILLION.THE SHIFT TO PUBLICOWNERSHIP CUT THEAVERAGE CUSTOMER'SWATER BILL...BUTPROPERTY TAXES DID GOUP TO BUY THE SYSTEM."rates are up 60%..."WE CHECKED WITHTHE WATER DISTRICT...AND RATES DID GO UP30-PERCENT FROM 20-09TO 20-12.THE AD'S CLAIM OF A60 PERCENT HIKE WASCALCULATED USING ANAVERAGE CUSTOMER'SRATE."and I'm paying almost $14,000more in property taxes to payoffbuying out the water company."THAT NUMBER MAYSHOCK YOU, AND MAYLEAD YOU TO BELIEVETHAT THE PROPERTY TAXHIKE IS 14-THOUSANDDOLLARS A YEAR. IT'SNOT.THE 14-THOUSANDDOLLAR AMOUNT ISWHAT AN AVERAGEHOMEOWNER WOULD PAYOVER A PERIOD OF 30YEARS.ACCORDING TO THETHE "RISK WE CANNOTAFFORD COMMITTEE...THAT PAID FOR THE AD... THAT WORKS OUT TOBE AN ADDITIONAL 38DOLLARS A MONTH ONPROPERTY TAXES...OVERTHIRTY YEARS.WE'VE ALSORECEIVED FLOW'S TAKEON THIS NO-ON-O AD.THEIR TAKE: WATERRATES WOULD BE EVENHIGHER IF CAL-AM STILLOWNED THE WATERSYSTEM ...AND THEY LOOK AT THEBOND TO TAKE THEWATER SYSTEM PUBLICAS MORE OF AMORTGAGE ON THEPROPERTY THEY'LL BEPAYING FOR OVER THECOURSE OF THIRTYYEARS ...DAN...ERIN?###AND FOR MORE ONMEASURE O AND ALL OFOUR COMMITMENT 2014COVERAGE YOU CANVISIT OUR WEBSITE.AND WHILE YOU'RETHERE YOU CAN SIGN UPTO HAVE BREAKING NEWSALERTS SENT RIGHT TOYOU COMPUTER ORMOBILE DIVICE.ALL AT KSBW DOTCOM.###

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Monterey Peninsula Measure O: Yes or No?

Ron Cohen believes water customer rates would be lower if the California-American Water company was booted out of power and a public utility took over water supplies and management.